Craftsman Automation soars 9%; hits record high on acquisition of DR Axion
Shares of Craftsman Automation hit a record high of Rs 3,537.15, soaring 9 per cent on the BSE in Friday’s intra-day trade after acquisition of auto components company DR Axion India Private Limited (DRAIPL) for Rs 375 crore. The stock of auto components & equipments company surpassed its previous high of Rs 3,462.95 touched on November 11, 2022.
Craftsman Automation in an exchange filing said, the company has entered into a definitive agreement on December 29, 2022 subject to closing conditions to acquire 85.76 million equity shares representing 76 per cent of the total paid-up equity share capital (fully diluted basis) of DRAIPL.
Upon completion of the transaction, DRAIPL will be a subsidiary of the company. The acquisition is expected to be completed before March 31, 2023.
On objects and effects of acquisition, Craftsman Automation said the company and DRAIPL both operate in the auto components space and have strengths in complementary areas. The acquisition will help both entities leverage their strengths and build better synergies, it added.
DRAIPL manufactures aluminium cylinder heads, a critical auto component used in passenger vehicles as outer shell of internal combustion engines. The Company has a single manufacturing facility in Chennai. DRAIPL’s customers are leading automobile original equipment manufacturers selling passenger vehicles in India. The turnover of DRAIPL during the FY 2021-22 was Rs 715.9 crore.
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